 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3330
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                    January 24, 2025
                                       ___________
 
        Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Budget and Revenue
 
        AN ACT to amend the tax law, in  relation  to  taxpayers,  and  combined
          groups  including  members, engaged in providing professional employer
          organization services

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph (a) of subdivision 10 of section 210-A of the tax
     2  law, as added by section 16 of part A of chapter 59 of the laws of 2014,
     3  is amended to read as follows:
     4    (a)   Receipts  from  other  services  and  other  business  receipts.
     5  Receipts from services not addressed in subdivisions one through nine of
     6  this section and other business receipts not addressed in such  subdivi-
     7  sions  shall  be included in the numerator of the apportionment fraction
     8  if the location of the customer is within the state. Such receipts  from
     9  customers  within  and without the state are included in the denominator
    10  of the apportionment fraction. For purposes of this  paragraph,  taxpay-
    11  ers, and combined groups including members, engaged in providing profes-
    12  sional  employer  organization services shall include with such receipts
    13  amounts received with respect to wages,  benefits,  and  other  employee
    14  expenses  disbursed to or for the benefit of a client's worksite employ-
    15  ees and the  related  employment  taxes  if  the  amounts  received  are
    16  included  in the calculation of the business income base or the combined
    17  business income base, respectively. Whether the receipts are included in
    18  the numerator of the apportionment fraction is determined  according  to
    19  the  hierarchy of method set forth in paragraph (b) of this subdivision.
    20  The taxpayer must exercise due diligence under each method described  in
    21  such paragraph (b) before rejecting it and proceeding to the next method
    22  in  the  hierarchy, and must base its determination on information known
    23  to the taxpayer or information that would be known to the taxpayer  upon
    24  reasonable inquiry.
    25    § 2. This act shall take effect immediately and shall apply to taxable
    26  years beginning on and after January 1, 2015.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03263-01-5
Relates to professional employer organization services

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